Chicago's Joffco Square file Chapter 11
River West Plaza-Chicago LLC, the owner of the Joffco Square shopping center on West Roosevelt Road in Chicago, filed a Chapter 11 petition on Dec. 7 in its hometown after being unable agree with Bank of America NA on an extension of the maturity of a $26.2 million mortgage.
River West filed a plan to give the bank a new five-year mortgage paying interest only until maturity at the prime rate plus 50 basis points. The plan says the bank is impaired and entitled to vote on the plan.
Unsecured creditors are to be paid in full within 60 days, with interest, and likewise will vote.
Insiders holding a $3 million loan are to subordinate their claim to the bank.
The petition says the property is worth $27 million, while total liabilities are $32.5 million.
A court filing says the mortgage was never in default until it matured. Income is sufficient to pay operating expenses and interest on the mortgage, according to a court filing.
The five-story shopping center has 95,000 square feet. The principal tenants are Best Buy Co. and Bed Bath & Beyond Inc.
The case is In re River West Plaza-Chicago LLC, 09-46258, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).